Etihad and Jet already have a code-sharing agreement, and a tie-up could make Jet a more formidable competitor to state-owned Air India, while strengthening Etihad's position against Dubai-based Emirates Airline EMIRA.UL, which carries a big chunk of the traffic between India and the Middle East.

A deal between Jet and Etihad could shut the door on grounded rival Kingfisher Airlines (KING.NS), which is in desperate need of cash to fly again and was in talks with Etihad to sell a stake.

Etihad's decision to buy into Jet may be announced in 10 days, the same source quoted earlier said on Wednesday.

Etihad, which expanded globally through stake purchases in the likes of Air Berlin (AB1.DE) and Virgin Australia VAX.AX, is looking to extend its geographical reach to India and other Asian markets, its chief executive told Reuters in October.

Next In Deals

NEW YORK The Beechwood group of reinsurance companies is in talks to sell most or all of itself after a backlash from some clients due to its relationship with troubled hedge fund manager Platinum Partners, according to a person familiar with the situation.

FRANKFURT German semiconductor chipmaking machinery company Aixtron may sell off part of its business, its chief executive said in an interview published on Friday, opening the door for bidders after a deal with a Chinese company collapsed.

Santa Monica-based Cornerstone OnDemand Inc has received approaches from potential buyers as shareholders including Praesidium Investment Management push the company to run a formal process, Bloomberg reported.

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